Government of
Meghalaya
Budget Speech

1980 – 81

By

Shri Stanlington D.
Khongwir

Deputy Chief
Minister, Meghalaya

14th March,
1980

Mr. Speaker, Sir,

I rise to present the Annual Financial Statement for
the year 1980-81

National Economy

The Indian economy was subjected to severe stress and
strains virtually throughout 1979.Stagnation in industry, drought
conditions in large areas of the country and unrelenting inflationary
pressures dominated the economy. The difficulties have been aggravated
by the periodic rise in the prices of petroleum products which induced a
cost-push inflation. During the year, the wholesale price index
rose by 21 percent, with the rate of increase accelerating as the year
progressed. The shortage in industrial inputs like power, coal, cement,
steel and diesel and several critical raw materials and spreading
industrial unrest adversely affected industrial production, which
recorded a negative growth rate of 0.6 percent in the first four months
of the current financial year. There has been a setback in agricultural
production during the year. Despite the better prospects of rabi crops,
the foodgrains production during the current year is likely to fall
short by 10 to 12 million tonnes compared to 130.5 million tonnes
reached in 1978-79

Meghalaya's Economy

The generally adverse conditions in the national
economy were inevitably reflected in that of our State also. The
economy of Meghalaya still lacks adequate diversification and depends
heavily on outside supplies. While the State is predominantly
agricultural, it is yet to be self-sufficient in foodgrains. Over the
recent years, the foodgrain production in the State has steadily
increased reaching a total of 1,50,000 tonnes during the 1978-79
agricultural year. During the current year, agricultural
production in the State has shown a decline as a result of unprecedented
drought conditions in the summer of 1979 followed by unusual rains
later. According to present indications, the foodgrain production
during the current year is unlikely to exceed 1,41,000 tonnes. While
marked losses had been recorded in production of maize, millets as also
cash crops, the production of potato has shown a sizable increase over
the previous year which has caused marketing problems for the growers
requiring the State agencies to step in to arrest the slumping prices.
The inevitable setback in foodgrains following the drought had led the
State to seek for increased allocations from the Centre's buffer stock
of foodgrains. The monthly allotment of rice from the Centre had
accordingly increased to 7,000/8,000 tonnes in latter half of 1979
as against 5,300 tonnes in the earlier part of the year. The wholesome
impact of such increased allotment was, however, somewhat neutralised by
the widespread inflation in the country and abroad and also the
disquieting events in the State towards the end of 1979.

Prices started rising in March/April, 1979 and by
July/August, 1979 the upward spiral had become quite pronounced. In
the twelve months between January, 1979 and December, 1979 the open
market retail price at Shillong had risen by 27.8 percent in the
case of coarse rice, by 23.7 percent for mustard oil, 66.6 percent in
respect of sugar and 31.3 percent as regards salt. This position holds
broadly true in other parts of the State also. The generally
unsatisfactory operation of rail and road transport had contributed
in no small measure to the difficult situation.

In view of these factors, the common man had been
called upon to make sacrifices which he is ill-equipped to bear. He,
however, looks forward to the future with renewed hope and determination
after giving a massive mandate to Smti. Indira Gandhi to restore
stability to the economic and political systems. Under the dynamic
leadership, the people of Meghalaya are confident that the Centre will
take greater and more sympathetic interest in the affairs of the tribal
people , so that they can develop and prosper , according to their
genius.

Sixth Plan of Meghalaya

The approved outlay for the Sixth Five Year Plan of
Meghalaya (1978-83) has been fixed at Rs. 180 crores. In addition
to this outlay, a sum of Rs. 11 crores has been allotted by the Planning
Commission to the State for the central sector and centrally
sponsored schemes transferred to the State sector. The revised Minimum
Needs component of the Sixth Plan outlay is Rs. 38.05

The size of the annual plan for 1980-81 was fixed at
Rs. 36.50 crores including Rs. 7.01 crores for the revised
Minimum Needs programme during the official level discussions in the
Planning Commission held in January, 1980 . The budget estimates have
been prepared according to the sectoral outlays indicated by the
Planning Commission on the basis of such discussions. Further
discussions have been held with the Secretary, Planning Commission
during this months for finalising the annual plan of the State. for
1980-81. According to the latest indications, the size of Meghalaya's
Annual Plan for 1980-81 would be of the order of Rs. 38 crores showing
an increase in the outlays of some sectors like Power, Water
Supply, etc. In view of the fact that the final discussions could be
held only this month, it has not been possible to incorporate the
modified outlays in respect of these sectors in the budget estimates
presented before the House. The Government would be coming to the
House again by way of supplementary demands and supplementary
appropriations for grants wherever necessary. In addition to the State
Plan outlay , a sum of Rs. 2.29 crores has been allotted to Meghalaya
for ongoing and the new schemes out of the N.E.C. Regional Plan.

The State Government are keenly aware of the need for
effective implementation of the various development programmes and
proper utilisatin of plan funds. With a view to advising the government
in the matter of socio-economic development of the State, the State
Planning board has been reconstituted with Shri W.A. Sangma, as Chairman
and Shri E. Iawphniaw as Deputy Chairman besides other non-official and
official members . The District Planning Boards in respect of all the
five districts have also been reconstituted by the Government appointing
non-official members as Chairman and Deputy Chairman. Government have
also set up District co-ordination Committees with a view to ensuring
co-ordination in formulation and implementation of plan schemes in the
districts. Despite difficulties like shortage of technical personnel and
construction materials, drought situation in some of the
paddy-growing areas and disturbed conditions in some parts of the State
leading to delay in execution of schemes during the vital working
season, every endeavour is being made by the State Government to achieve
the targets set for the year in various sectors of development.

Agriculture

The main objective of the agricultural
development programme is to obtain self-sufficiency in foodgrain
production by the end of the Sixth Plan and also to improve the economic
condition of the farmers by increasing production of cash crops
and horticultural crops. Owing to drought conditions in certain parts of
the State, the output of foodgrains during the current year is
expected to be below the targeted level. The department is proposing a
target of 1,70,000 tonnes of foodgrains for the year 1980-81 through
larger coverage under high yielding varieties and improved varieties and
encouraging double cropping especially in irrigated areas. Steps
have been taken to organise better marketing facilities for the
agricultural produce of the farmers.

An outlay of Rs. 158.90 lakhs has been earmarked for
agricultural production for 1980-81 as against an approved outlay of Rs.
137.00 lakhs during 1979-80. The proposed outlay for minor irrigation
under agriculture department is the same as the allotment during the
current year.

Soil Conservation

Effective soil and water conservation measures
are essential for proper agricultural development

The Jhum Control Scheme continues to be one of the
main schemes of the Soil Conservation department in order to check soil
erosion. The modified package of practices for helping the shifting
cultivators to take to permanent cultivation through provision of one
hectare of irrigated land per family with other assistance with regard
to availability of seeds, manure etc., will be continued during the next
year. Cash crops with low volume-high income potential will also be
taken up in suitable areas. The department has started nurseries of
coffee and rubber. The Coffee and Rubber Boards have introduced subsidy
for raising these crops. The department will render necessary technical
guidance to the farmers in the State in growing these crops.
Schemes to help individual farmers are also provided under general
soil conservation schemes, such as land development, erosion control and
water conservation.

The department is conscious of the need for adequate
raining and with this end in view, the Conservation Training Institute,
Byrnihat, has been expanded. Advantage has also been taken of the
North Eastern Council schemes for sending students for B.Sc. (Agri)
as well as various short-term training courses. During the current year,
the North Eastern Council has sanctioned a Central Coffee Nursery
at Marngar in East Khasi Hills which will produce sufficient seedlings
for 100 hectares of coffee plantation. Another centre is proposed to be
taken up in Garo Hills

Animal Husbandry

The main objective of this department is to diversify
the economy of small and marginal farmers by enabling them to take up
animal husbandry and dairy husbandry practices on scientific lines
as also to increase supply of protective food such as milk, meat and
eggs. The plan outlay proposed for Animal Husbandry during 1980-81 is Rs.
93.40 lakhs as against the current year's outlay of Rs. 87.00 lakhs. The
department will continue the Indo-Danish project in Upper Shillong and
cattle farm in Tura. Under the Intensified Cattle Development Projects
10 stockmen centres will be constructed . Due attention would also be
given for development of sheep and goat, poultry, piggery and feed and
fodder development. It is also proposed to expand veterinary services in
view of the need for adequate extension facilities in order to
promote scientific methods in the field of animal husbandry.
During the next year, it is proposed to complete construction of the
central dairy.

Fisheries

Despite considerable potential for development of
fisheries, most of the available natural fishery resources of the State
are yet to be fully developed in a scientific manner. The programme for
1980-81 of this department includes introduction of high-yielding and
fast growing species like Grass Carp and Silver Carp,
Paddy-cum-fish culture and composite fish culture and reclamation of
swamps and derelict fisheries besides conservation and legislative
measures to avoid depletion of natural fisheries. The scheme for
propagating trout fisheries in the State has made some progress through
near completion of the trout ponds and indenting of trout seeds.

Forestry

Forests play a crucial role in Meghalaya for checking
soil erosion and for retaining the fertility of the soil.

The activities of the forest Department include
raising of plantation to compensate the yield taken out of the forests
and to improve the growing stock. During the current financial year, the
department has raised 1,075 hectares of new plantation of economic
species in replacement of poorly stocked areas and uneconomic forests.
It is proposed to raise the coverage to 1,180 hectares during the next
year.
During the current year, the department has initiated a new scheme for
increase of forest areas under its direct control especially in places
where protective forest cover is essential for maintenance of the
water regime of our major water-ways. The department proposes to
extended help to various owners for raising plantation under social
forestry scheme under which it is expected to create 935 hectares
of new plantations during the next planting season. The
progress of the scheme will depend greatly on people's co-operation in
making land available.

The department is also continuing its assistance to
the District Councils to raise plantations in areas under their control.
Necessary fund is being made available for raising 565 hectares of
plantation in District Council forest areas. In order to regulate export
of timber, some control measures have been introduced during the
year through construction of check-gates on the main roads.

Community Development

The Community Development block have a very
significant role in the Government's endeavour to involve people
at the grass roots level in the development programmes. The State
Government's proposal for six additional Blocks has been agreed to by
the Government of India and for the next year, the outlay for Community
Development has been substantially increased partly to meet the
expenditure on the new Blocks. Apart from their regular activities
including Rural Works Programme, Applied and Special Nutrition
Programmes and assistance to voluntary organisation, the community
development Blocks have recently been called upon to shoulder the
work relating to integrated rural development. This programme is
an attempt to identify the poorer sections of the community and to make
a concerted effort to generate additional income for them and to
improve their standard of living. The Blocks are of particular
importance for installing enthusiasm among the people to participate
effectively in such programmes. The community development movement has a
special relevance to Meghalaya, as this is based in the faith and
capacity of rural people to help themselves in a democratic manner and
to bring about social justice.

Co-operation

The Co-operation department has completed re-organisation
of 180 co-operative societies as envisaged under the Master Plan of the
Reserve Bank of India. These re-organised societies will also take up
distribution of essential commodities and agricultural inputs
besides their main function of extending agricultural credit. The
societies are also being assisted in a phased manner to undertake
marketing of surplus produce. Full-time paid and trained Secretaries
have been posted in these societies for proper management . The
Meghalaya Co-operative Apex Bank Ltd. has started issuing medium
term and long term loans under the provisions of the Meghalaya Credit
Operatic and Miscellaneous Provisions Act, 1976. In the sphere of
marketing , the Meghalaya State Co-operative Marketing and Consumers'
Federation Ltd.. has undertaken market intervention to assist the
producers to obtain remunerative prices for their produce. The
Federation is also implementing the scheme for establishment of
agro-custom hiring centres in the border areas. It has also established
a Jute Grading and Baling Plant at Phulbari in Garo Hills. The consumer
net-work is also being strengthened in order to make available
essential commodities at reasonable prices to the common people and for
this purpose, the consumer wing of the Federation ins being strengthened
both organisationally and financially.

Food Control and Minor Irrigation through P.W.D.

The Public Works Department is continuing its
programme for construction of embankment and protection of villages and
towns under the Flood Control Programme. The irrigation project of
Rongai Valley and the project of Shella river are awaiting
technical sanction and it is expected that the execution work in respect
of the former project will commence soon.

Power

The Kyrdemkulai Project has been successfully
completed by the Meghalaya State Electricity Board. The Board has taken
up the Umiam -Umtru Stage. IV Hydro Project with Upper Khri Diversion.
As regards the Transmission Projects, the Shillong-Nangalbibra 132 K.V.
Transmission Line has also been taken up by the Board. In the field of
rural electrification. Substantial outlays have been proposed for the
next year to electrify 185 villages out of the continuing and newly
sanctioned schemes.

Mineral Development

Investigation of coal in Mawlong Borsora and Bupung
and investigation of limestone in Nongkhlieh are some of the
important activities already taken up which will continue during
the next year. The limestone investigation in a small block of the
Siju deposit has already been completed. A reserve of about 18 million
tonnes of limestone has now been brought to "Proved" category
by this investigation which will be sufficient for setting up a
Cement/Clinker Plant with a daily production of 900 tonnes. The
Analytical Laboratory of the Directorate of Mineral Resources is
being strengthened by induction of more staff and equipment.

Industries

The first phase of expansion project of
Mawmluh-Cherra Cements Limited has been completed and the second
phase of expansion is expected to be completed soon. The Meghalaya
Industrial Development Corporation has applied for Letter of Intent to
the Government of India for setting up of two more cement factories in
the State, and the Letter of Intent for the Jaintia Hills cement
factory has since been received. The watch assembly unit at Shillong
Industrial. Estate which is being done in collaboration with H.M.T.
Bangalore has made substantial progress. In order to utilise the bamboo
reserve of the State a subsidiary company of the M.I.D.C. has been
incorporated and this unit is proposed to be located in Garo Hills. The
M.I.D.C. has also continued its activities for development of industrial
areas in the State and also for man-power training, investigation and
feasibility studies and execution of the incentive schemes of the
Government.

Small industries are of special significance in the
new development strategy of promoting maximum avenues for
self-employment. The department has laid stress on the training
aspects in various traders. The Shillong Industrial Estate is
functioning well with all the sheds occupied. The Meghalaya
Handicraft Development Corporation is taking up schemes for identifying
artisans and for assisting them and to set up an organised commercial
base.

Sericulture and Weaving

Sericulture and handloom weaving provide mainly
part-time employment to over 15,000 people at present, mostly in
the rural sector. These play a crucial role in generating additional
income to the weaker sections of the society. The proposed outlay
for sericulture and weaving for 1980-81 is Rs. 35 lakhs for State Plan
schemes and Rs. 5 lakhs for border areas. The department has
started some nurseries during the current year and have taken steps to
extend about 60 hectares of individual plantations of eri silkworm food
plans covering about 350 families in selected pockets. Additional farms
have been started to meet the increased requirement of seeds. In
the field of weaving, steps have been taken to modernise 800 looms in
the current year in two concentrated areas of Garo Hills . The
reorganisation of 30 existing Handloom co-operative societies was also
taken up in the current year. These activities will continue during the
next year.

Roads

Development of communications has been given topmost
priority in the planning strategy of Meghalaya and emphasis has been
laid on achievement of a well laid network of roads linking the
agricultural belts, industrial and mining areas and areas having
substantial development potential besides linking up the interior with
administrative headquarters. In view of the past neglect, the
position with regard to roads in Meghalaya is much less than the
All India average as the State has achieved a road density of 18 K.M.
per 100 Sq.K.M. against the national road density of 32 K.M. per
100 Sq. K.M.

Substantial investments have been made in the road
sector during the last few years. The Sixth Plan proposals have
given emphasis for completion of ongoing schemes. During the current
year the department expects to achieve 160 K.M. of new construction of
roads , 112 K.M. for improvement and black-topping and 370 K.M. of
major and minor bridges.

Transport

The Meghalaya Transport Corporation is taking
steps to improve its performance on the existing routes by
offering better and timely services. At present, the Corporation
is operating on 28 routes covering 2,893 K.M. It is also acquiring land
to the extent of over 10 acres for establishment of a Central Workshop
in Happy Valley. The Corporation has expanded its fleet by addition of
25 buses and 7 trucks. Construction of station buildings at Tura and
Jowai are also being taken up.

Two weigh bridges, one at Mawiong and the other at
Chisengpara on Tura-Rongram road are being installed and land for
the purpose has already been acquired.

Tourism

The activity of this department is aimed at creation
of the necessary infra-structure for attracting more tourists. During
the current financial year, a number of schemes have been taken up and
the Tourist Bungalow at Thadlaskein has been formally inaugurated.
During the next year, steps will be taken for improvement of the
Tourists' Bungalows in various Centres of the State, for purchase of
another mini bus and participation in Publicity and Tourists
Festivals organised at national level

Education

The shortage of technical personnel in the State can
be solved only if effective measures are taken for imparting Science
education even at the primary and middle stages to the boys and girls of
Meghalaya. The Education Department is taking steps to reorganise and
improve the system of imparting science education in Meghalaya through
the implementation of the UNICEF assisted Science Education Programme.
The programme aims at development of scientific aptitude among the
children right from the school stage to enable them to adopt to
the fast changing living conditions and economic needs of the society
and this is sought to be achieved through the introduction of new
Science text books which would generate interest for Science among the
children. A number of primary schools have already been covered and many
more will be taken up in 1980-81 till the stage of universalisation is
reached.

The State Council for Educational Research and
Training, besides imparting training to school teachers, has undertaken
research and analysis to detect the deficiencies in the system
such as high percentage of untrained and under qualified school
teachers, exorbitant wastage of education especially at the
primary level, etc. It has taken steps for imparting in-service
training to teachers in important subjects like Mathematics,
English, History and Geography and has organised free coaching classes
in 8 centres in Mathematics and Science for the tribal students. It was
in constant touch with the national agencies to find solutions to the
various problems. The Council has also got UNICEF assisted projects for
improvement of education in the State especially at the primary level
and is also planning to provide free coaching classes to the
private H.S.L.C. students who are deprived of guidance because of
poverty.

The department is taking steps to consolidate and
improve the facilities provided in the Government , colleges and is also
continuing assistance to non-Government colleges. A survey unit for
collegiate education in the State has been set up recently.

Steps have also been taken to strengthen the
administrative set up of the Technical Education wing. At present, the
functioning of Polytechnics has been hampered owing to non-availability
of qualified teachers.

The State Government are also pursuing vigorously the
Adult Education Programme in line with the priority given to this
at the national level. During the next financial year, it is proposed to
cover 36,000 illiterate adults in 1,200 centres with an outlay of Rs. 8
lakhs.

Health

The main thrust of the Health Department
is to provide preventive services against diseases. At the same time,
curative services are also receiving adequate attention. The department
is also encouraging promising young men and women of the State to take
to medical education through arrangement of seats in different medical
colleges in the country. The establishment of another regional medical
college at Shillong proposed through the North Eastern council has not
yet materialised but in the meantime, the Indian Medical Council has
recognised the Civil Hospital, Shillong for imparting housemanship
training to the medical graduates. This will help the government to cope
with the shortage of specialists in the Government Hospitals.

The expansion and improvement of the Pasteur
Institute which is financed by the North Eastern Council is in progress.
The department is conscious of the paramount need to improve
health care services in the rural areas and has embarked on a scheme for
setting up additional Primary Health Centres. The department also
will take over for improvement and maintenance of 44 sub-centres
form the Community Development department. A mobile unit in Khasi Hills
will continue to be maintained during the next financial year.

Besides the centre at Shillong, establishment of
Homeopathic dispensaries at Tura and Jowai have been sanctioned and will
be commissioned soon. An engineering wing has been sanctioned for
the department and it is expected that from the next financial
year, the department itself would take over buildings from
the Public Health Engineering department and embark on new construction
activities. Sub divisional hospitals at Baghmara, Mairang, Amlarem and
Nongpoh would be set up and also the mobile health services would
be augmented . Despite efforts to improve medical facilities in
the rural areas, these are still lagging behind in the matter of medical
relief and care. The department has been geared up to meet the
challenge, as the progress and progress and prosperity of the State
depend not only on its natural resources but even more importantly, on
the vitality of its people and it is necessary to have adequate
investment in human resources.

Water Supply

The Public Health Engineering department of the State
has taken up a number of rural water supply schemes, out of which
108 schemes have been completed upto last year covering 190 villages.
The Sixth Plan outlay for the department is Rs. 33 crores of which
an amount of Rs. 19.75 crores is earmarked for rural water supply
schemes. The execution of schemes for waster supply in rural areas
thus continues to be an essential part of the departments programme. As
regards urban water supply schemes, the department has taken up Umkhen
Phase I and II and Crinoline Falls Water Supply Scheme increasing the
supply of filtered water to Shillong town by 4 lakhs gallons per day.
The new Jowai Waster Supply scheme is nearing completion and is
currently under trial runs before commissioning. The department is also
giving attention for early completion of the Greater Shillong
Waster Supply scheme costing Rs. 23.90 crores.

Municipal Administration

During the current financial year, a Municipality has
been constituted at Tura by the Government taking recourse to the
provisions of the Meghalaya Municipal (Garo Hills Autonomous District)
Act, 1978. The department is assisting the Shillong Municipality
for improving water supply within the municipal area, roads and drainage
system in the town, service conditions of the Harijan mazdoors employed
by the Board and also to meet other obligatory expenditure. Government
have agreed to the imposition of tolls by the Shillong Municipality on
certain categories of vehicles entering the Municipal area in order to
augment the Municipal Board's own revenues.

Social Welfare

The Policy of the State Government in respect
of Social Welfare schemes is to involve voluntary organisations
in implementing its programme and to strengthen them by giving
them grants as well as through organisation of short training
programmes at the State and district level. A number of Schemes
for child welfare were implemented by the department in connection
with the celebration of the International Year of the Child, 1979. The
department has taken up schemes for care of destitute widows infirm
women as also for construction and expansion of working women's hostels.
The Meghalaya State Social Welfare Advisory Board is being assisted by
the department in respect of its functioning and maintenance. The
department is also running a special nutrition programme in the
urban areas and project areas under the Integrated Child
Development Service Scheme.

Border Areas Development

A number of schemes have been taken up in the border
areas of the State for implementation by different development
departments with an approved plan outlay of Rs. 700 lakhs for the
Sixth Plan period. The anticipated expenditure for the current year
is over Rs. 150 lakhs as against an approved outlay of Rs. 140 lakhs. A
sum of Rs. 160 lakhs is proposed for the next year's plan. The
main programme of the department is to augment agricultural production
in the border areas, improve marketing facilities and also
to promote animal husbandry and sericulture and weaving. The department
is also operating transport subsidy schemes by subsidising the
transport cost of essential commodities. As one of the main
problems faced by the people in the border areas relates to marketing of
their produce, the department has geared up the operation of the
marketing scheme with the close involvement of the Meghalaya State
Co-operative Marketing and consumer's Federation Ltd., which
purchases border produce and also makes available free transport
facilities through border trucks.

Information & Public Relations

The Information and Public Relations services have
assumed considerable importance with the increase in developmental
activities, in order to effectively involve the people in purposeful
collaboration with the State agencies for implementation of the various
programmes. The department has taken steps to strengthen its offices in
all the district headquarters and also to set up offices in the new sub
divisional headquarters. The department also played an important role
during the recent disturbances in Shillong by giving timely publicity to
the measures adopted by the Government for maintenance and
enforcement of law and order. Production of a documentary film on
the "Life and Culture" of the People of Meghalaya" is in
progress.

Statistics

The Statistics organisation of the State has taken up
compilation of the State's statistical abstract and also held
discussions with Central Statistical Organisation and the Labour
Bureau in compilation of the consumer price index and on the scope
for a fresh family budget survey by the Government of India to
ensure availability of better consumer price index for the State. During
the year, the Directorate of Statistics had conducted a quick survey of
the family budgets of the State Government's employees on behalf of the
Meghalaya Pay Commission. The directorate also completed the
study of urban land values and survey of mortality rates of
Government employees. The directorate has been in constant touch with
the Central Statistical Organisation and the Census authorities for
conducting the next economic census along with the house list operations
of the general census next year. It is likely to be associated in many
stages in the socio-economic surveys to be conducted next year on behalf
of the Backward Classes Commission and in connection with the integrated
rural development in the State. The programmes for the next year include
consolidation of the existing schemes as well as adoption of new schemes
established on the recommendations of the recent All-India Statistical
Conference, such as special sample surveys of consumer expenditure and
studies on labour co-efficient.

Administrative & Residential Buildings

Selection of sites for construction of buildings for
the headquarters of Mairang and the Amlarem Subdivisions is expected to
be finalised soon and the actual construction work will be
finalised soon and the actual construction work will be started next
year. A major portion of the current year's outlay has been on
construction of office buildings and residential quarters at the new
district and sub divisional headquarters as also in meeting the
land acquisition cost. Attention is also being given for construction
and completion of Circuit Houses in some of the district headquarters.

A number of schemes has been prepared in respect of
police housing, construction of Police battalion headquarters, new
jails and administrative buildings to take advantage of the Finance
Commission's allocation of Rs. 4.86 crores of Meghalaya
outside the State Plan, for upgradation of the standard of
administration over a five year period.

Elections

The General Elections to the Lok Sabha were
successfully completed from the Tura Parliamentary Constituency in
January, 1980. Elections were not held for the Shillong Parliamentary
seat of Lok Sabha in the absence of any contesting candidate. The
Election Commission and the Government of India are seized of the
need to have accurate electoral rolls in the State which will not
include the name of any ineligible person and, at the same time,
ensure that all eligible citizens of India are enrolled. The State
Government would render all assistance to the Election Commission and
the State election machinery in the performance of this task and are
confident that all the political parties and public leaders will also
extend their co-operation in this regard.

Pay Commission

The Meghalaya Pay Commission had submitted its report
to the Government in two parts. The State Government have carefully
considered their recommendations and have accepted them with
improvements in some cases, even though acceptance of the
recommendations involves substantial additional financial expenditure
for the State. The State Government trust that the additional
benefits will go a long way to assist the State Government
employees as also the employees of aided educational institutions
to meet the increasing cost of living and are confident that the
employees, on their part, would put in their best efforts to improve the
quality and efficiency of public service

Food & Civil Supplies

The supply position of foodgrains and other essential
commodities during the year has not been entirely satisfactory
owing to non-availability of wagons, poor harvest and civil disturbances
which affected the smooth inflow of essential commodities. The State
Government have however, made efforts to conserve a minimum stock
of essential commodities for at least a month. The difficulties in
getting railway wagons had posed a serious problem for the State and
during a part of the year, foodgrains had to be brought by road from
broad gauge terminal in Assam. Sugar became scarce and very
costly recently and the State Government have taken steps to
arrange for adequate quantity of sugar for the consumers at prices which
are comparatively low. The present agitation in Assam has
seriously disrupted supply of petroleum products, as also kerosene
to the State. Shortage of petroleum products has also adversely affected
the movement of trucks. Cement was scarce during certain months in the
current year but the position has improved somewhat at present. During
the year, prices of some of the essential commodities increased
substantially. In order to check hoarding and profiteering, the Supply
Department is strictly enforcing the Meghalaya Scheduled Articles
(Display and Marking of Prices) Order, 1975. The local officers have
been requested to direct their nominees to import additional essential
commodities and to keep sufficient stocks. A Production-cum-Distribution
scheme in the State has been introduced with effect from July,1979.

Law & Order

There was deterioration in the law and order
situation in and around Shillong town from October to December, 1979.
The law and order situation in the rest of the State was mostly
peaceful. The State Government are determined to ensure that complete
normalcy is restored in Shillong at the earliest and are confident that
in this endeavour, the active co-operation of all sections of the
society and public leaders would be forthcoming in abundant measure so
that our State can once again regain its well-earned reputation of
a haven of communal harmony

The State Government have also taken a number of
steps to cope with the problem of infiltration of foreigners
particularly from Bangladesh and Nepal.

Various measures have been taken to assist
police personnel particularly in the lower formations through extension
of a number of benefits. Police Housing schemes continue to
receive adequate attention. Government are anxious that the
functioning of the State Police Force should be modernised and
streamlined so that it serves as an effective instrument to safeguard
the vital interests of the society.

Civil Defence & Home Guards

The Home guards acquitted themselves well
when called upon to assist the police in maintenance of law and order in
Shillong town from October, 1979 onwards. Two Platoons of Women
Home guards were also deployed during this period. The Department is
laying emphasis on training of Civil Defence and Home guards
volunteers and 26 persons had been deputed for training outside
the State during the current year. During the next year, it is
proposed to deploy more Border Wing Home guards on the Indo-Bangladesh
border and also to make the village defence parties more effective
by training them in drills, discipline and in handling lathis and
rifles.

District Councils

The District Councils were assisted as usual for
implementation of their own plan schemes for rural water supply,
communications, self-help schemes, etc., and also for construction of
buildings. During the current year, a plan outlay of Rs. 17 lakhs was
provided in the State Plan Budget, out of which a sum of Rs. 15 lakhs
was earmarked for financing the District Council's own Plan Schemes and
Rs. 2 lakhs for construction of District Councils buildings. The next
year's plan outlay for District Council is fixed at Rs. 20.40 lakhs.

Personnel Matters

Government are taking necessary measures to improve
the efficiency and working system through imparting adequate training to
the Government employees. The District Selection Committees have
been recently reconstituted. State Government are also continuing their
assistance to Meghalayan scheduled tribe candidates who secure admission
to the All-India Services Pre-Examination Training Centre in Shillong.

Revenue Affairs

The major schemes in the approved plan programme
operated by the Revenue Department consist of the establishment of a
Survey School at Tura , survey and preparation of records of rights and
enforcement of the provisions of Meghalaya Transfer of Land
(Regulation) Act, 1971. The department has set up a cell for conversion
of land records to the metric system and another for processing the
recommendations of the Meghalaya Land Reforms Commission. The department
also arranged for relief to people affected by the drought conditions
and explained in detail the difficulties of the cultivators to the
Central Study Team which visited Meghalaya in July,1979.

The State Government have also been in touch with the
Government of Assam in order to finalise proper demarcation in certain
areas on the Assam-Meghalaya boundary which are regarded as " areas
of difference". It is hoped that further progress would be made in
this direction when a popularly elected Government is installed in
Assam.

Actuals 1978-79

The year 1978-79 opened with a negative cash
balance of Rs. 625.01 lakhs but the State Government had held Rs. 781.75
lakhs in the Government of India Treasury bills on the 1st April, 1978.
There was a total receipt of Rs. 32,634.02 lakhs and total expenditure
of Rs. 32,165.39 lakhs in that year under all accounts resulting in a
surplus of Rs. 468.63 lakhs. Thus the negative cash balance of Rs.
625.01 lakhs was reduced to Rs.156.38 lakhs at the end of the year. On
the other hand, the State Government's holding in the Treasury bills
also increased to Rs.860.00 lakhs. In other words, the year 1978-79
virtually closed with a surplus of Rs. 703.62 lakhs.

Revised Estimates for 1979-80

The revised estimates of receipt and expenditure on
all accounts for the current year are Rs. 33.964.09 lakhs and
Rs.33,527.43 lakhs respectively resulting in a surplus of Rs. 436.66
lakhs. This will not only wipe out the entire negative cash balance of
Rs.156.32 lakhs at the beginning of the year, but an amount of Rs.280.28
lakhs is expected to remain at the close of the year.

Budget Estimates 1980-81

I would like to give a broad picture of the budget
estimates for the next year. The receipts on revenue account are
estimated at Rs.6,635.66 lakhs and the estimated expenditure on revenue
account at Rs. 5,650.57 lakhs. There will thus, be a surplus of Rs.
985.09 lakhs on revenue account.

The estimated receipt and expenditure out side the
revenue account are estimated at Rs. 28,099.19 lakhs and Rs. 29,441.25
lakhs respectively leaving a deficit of Rs.1,342.06 lakhs. Thus,
together with the revenue surplus of Rs. 985.09 lakhs, there will be an
overall deficit of Rs. 356.97 lakhs. This will be partially wiped out by
the estimated opening balance of Rs. 280.28 lakhs leaving an uncovered
deficit of Rs.76.69 lakhs.

Mobilisation of Additional Resources

With a view to reduce the uncovered deficit and also
to fulfill our target of additional resource mobilisation committee to
the Government of India and the Planning Commission, I propose to
introduce the following measures. :-

(1) To increase court fee on certain categories of
applications and petitions.

(2) To increase the rate of Stamp duty.

(3) To increase Sales Tax from 6 percent to 7 percent
on "other goods" as indicated in item 3 of Schedule II of the
Meghalaya Sales Tax Act.

(4) To impose a tax of 7 percent on cooked foods
under Meghalaya Sales Tax Act.

(5) To impose a tax of 7 percent on Bread.

(6) To increase Sales Tax on tea from 6 percent to 7
percent under the Meghalaya Finance (Sales Tax) Act.

(7) To increase Excise Duty on India made foreign
liquor from Rs. 24 to Rs. 30 per L.P.L.

(8) To increase electricity duty from 3 paise
to 4 paise per unit of electric energy sold or consumed.

These measures are expected to yield additional
revenue to the extent of Rs. 30 lakhs during the year. They yield will
further increase when there is a settlement on the question of payment
of electricity duty by the Assam State Electricity Board in respect of
power supplied to it by the Meghalaya State Electricity Board.

I do not, however, propose to take any measure to
cover the remaining gap at this stage. But the receipt and expenditure
will be constantly reviewed during the course of the year and
appropriate steps will be taken to cover this gap also.

Meghalaya has made substantial progress in the social
and economic fields after attainment of statehood, but a lot more
remains to be done. It is necessary to continue our efforts to build up
an adequate infra-structure in the State which will accelerate the pace
of economic development. It is important that the benefits of progress
percolate to the weaker sections of the society, most of whom live in
the rural areas, through encouraging them to take to scientific methods
of cultivation and other remunerative occupations like small and cottage
industries. The State owes a special obligation to the poorest sections
of the society which are in need of much greater attention, if their
quality of life has to be improved. It is important that the process of
development should be carried on in such a manner as to actively involve
the people of the State particularly the members of Scheduled Tribes in
the various plans and programmes. This would be possible only if we lay
stress on encouraging our youth to take to technical education in
increasing numbers. It is also essential that we create and
maintain an environment which will be conducive for quicker and more
meaningful development of the State. I am sure that the Government would
receive the co-operation of the Hon'ble Members of the House in
achieving the common tasks before us.

With these words, Sir, I present the Budget for
1980-81 for consideration and acceptance of the House. As according to
the Assembly Calendar, it would not be possible to complete detailed
discussions on the Budget proposals before the end of the financial
year, I propose to move the House, in the first instance, for voting
Advance Grants and for sanctioning Advance Appropriations to
enable the Government to defray its expenses for part of the next
financial year.

KHUBLEI

MITELLA

JAI HIND

ANNEXURE

The financial position for the year 1980-81 with
corresponding position in the previous years